The First Trust Large Cap Value AlphaDEX ETF (FTA) was launched on 05/08/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.

What Are Smart Beta ETFs?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

Because the fund has amassed over $1.41 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. FTA is managed by First Trust Advisors. This particular fund seeks to match the performance of the Nasdaq AlphaDEX Large Cap Value Index before fees and expenses.

The NASDAQ AlphaDEX Large Cap Value Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 500 Large Cap Value Index.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Operating expenses on an annual basis are 0.58% for FTA, making it one of the more expensive products in the space.

FTA's 12-month trailing dividend yield is 1.58%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

Representing 27.2% of the portfolio, the fund has heaviest allocation to the Financials sector; Utilities and Healthcare round out the top three.

When you look at individual holdings, Humana Inc. (HUM) accounts for about 1.46% of the fund's total assets, followed by Elevance Health Inc. (ELV) and Super Micro Computer, Inc. (SMCI).

FTA's top 10 holdings account for about 10.66% of its total assets under management.

Performance and Risk

The ETF has added roughly 19.98% so far this year and was up about 29.34% in the last one year (as of 07/29/2026). In the past 52-week period, it has traded between $78.13 and $102.66

The fund has a beta of 0.79 and standard deviation of 13.93% for the trailing three-year period, which makes FTA a medium risk choice in this particular space. With about 188 holdings, it effectively diversifies company-specific risk .

Alternatives

First Trust Large Cap Value AlphaDEX ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.

Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $104.5 billion in assets, Vanguard Value Index Fund ETF Shares has $190.33 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit

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First Trust Large Cap Value AlphaDEX ETF (FTA): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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